RECEIVED 1099 FOR STOCK CAR RACING WHICH IS A HOBBY, CAN I DEDUCT ANY EXPENSES TOWARDS THIS?

Forum|Forum|7 years ago
June 3, 2019
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TurboTax Home & Biz Windows

Best answer by TomK2023

To enter hobby income and expenses in TurboTax please follow these steps:

Sign in to your TurboTax account
Click on Federal Taxes tab
Choose Wages and Income
Scroll down to Less Common Income and click Start to to right of Miscellaneous Income, 1099-A, 1099-C
Click Start to right of Hobby income and expenses

The IRS doesn't allow you to deduct hobby expenses directly from hobby income. Instead, you can deduct expenses as an itemized deduction subject to 2% of your adjusted gross income. Also, the amount that you claim as an expense cannot be greater than your income from the hobby. In other words, your hobby cannot generate a loss.

Taxpayers can choose to itemize expenses on their tax returns or take the standard allowable deduction. Hobby expenses can only be deducted if you itemize your deductions.

TomK2023Answer

Level 15

To enter hobby income and expenses in TurboTax please follow these steps:

Sign in to your TurboTax account
Click on Federal Taxes tab
Choose Wages and Income
Scroll down to Less Common Income and click Start to to right of Miscellaneous Income, 1099-A, 1099-C
Click Start to right of Hobby income and expenses

Taxpayers can choose to itemize expenses on their tax returns or take the standard allowable deduction. Hobby expenses can only be deducted if you itemize your deductions.

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